Modern Times Group MTG AB's (STO:MTG B) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Modern Times Group MTG's Annual General Meeting to take place on 15th of May
• Total pay for CEO Maria Redin includes kr7.39m salary
• The overall pay is comparable to the industry average
• Over the past three years, Modern Times Group MTG's EPS fell by 44% and over the past three years, the total loss to shareholders 0.9%

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In the past three years, shareholders of Modern Times Group MTG AB (STO:MTG B) have seen a loss on their investment. Per share earnings growth is also poor, despite revenues growing. Shareholders will have a chance to take their concerns to the board at the next AGM on 15th of May and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

Check out our latest analysis for Modern Times Group MTG

Comparing Modern Times Group MTG AB's CEO Compensation With The Industry

Our data indicates that Modern Times Group MTG AB has a market capitalization of kr14b, and total annual CEO compensation was reported as kr22m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at kr7.4m.

On comparing similar companies from the Swedish Entertainment industry with market caps ranging from kr9.7b to kr31b, we found that the median CEO total compensation was kr20m. This suggests that Modern Times Group MTG remunerates its CEO largely in line with the industry average. Furthermore, Maria Redin directly owns kr77m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr7.4m	kr7.1m	34%
Other	kr14m	kr15m	66%
Total Compensation	kr22m	kr22m	100%

On an industry level, around 75% of total compensation represents salary and 25% is other remuneration. In Modern Times Group MTG's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Modern Times Group MTG AB's Growth

Over the last three years, Modern Times Group MTG AB has shrunk its earnings per share by 44% per year. It achieved revenue growth of 19% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Modern Times Group MTG AB Been A Good Investment?

Since shareholders would have lost about 0.9% over three years, some Modern Times Group MTG AB investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

Shareholders may want to check for free if Modern Times Group MTG insiders are buying or selling shares.

Important note: Modern Times Group MTG is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.